It is a widespread view that democracy and the advanced nation-state are in crisis weakened by
globalization and undermined by global capitalism. Torben Iversen and David Soskice argue that
this view is wrong. In fact advanced democracies are resilient and their enduring relationship
with capitalism has been mutually beneficial. Iversen and Soskice show how democratic states
continuously reinvent their economies through public investment in research and education by
imposing competitive product markets and cooperation in the workplace and by securing
macroeconomic discipline as the preconditions for innovation and the promotion of advanced
sectors of the economy. Challenging the prevailing wisdom on globalization Democracy and
Prosperity reveals how advanced capitalism is neither footloose nor unconstrained--and how it
thrives under democracy precisely because it cannot subvert it.
